Selling Hospitality Chapter 16 Sales Channels and Intermediaries Connecting products with markets profitably
Gaining Competitive Advantage <ul><li>“ For a business to be viable at all, it must do something well. For it to win in a ...
Hilton’s Sales Channels <ul><li>A mixture of  </li></ul><ul><li>a hotel-specific sales force </li></ul><ul><li>a national ...
Chapter 16 Outline <ul><li>What channels are being used in the hospitality industry and why? </li></ul><ul><li>What implic...
 
Types of Travel Agencies <ul><li>Vacation stores </li></ul><ul><li>Commercial agencies </li></ul><ul><li>Direct response a...
Channel Mixes Come in  Three Forms <ul><li>Intensive </li></ul><ul><li>Selective </li></ul><ul><li>Hybrid </li></ul>
Example of Intensive versus  Selective Channel Coverage Value of sale High Med Low Need for customization Low Med High Int...
Example of Intensive versus  Selective Channel Coverage High Med Low Value of sale High Med Low Need for customization Low...
<ul><li>Web marketing and design  </li></ul><ul><li>Ad development and placement — intern would need to be familiar with P...
Example of a  Hybrid Channel Coverage Value of sale High Med Low Need for customization Low Medium High Travel agencies + ...
So Why Not Use All Sales Channels? <ul><li>Multiple sales channels may end up chasing the same sales (channel shift versus...
Re-Engineering the Sales Process
Re-Engineering the Sales Process Reduces costs; improves quality
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Chapter 16

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Chapter 16

  1. 1. Selling Hospitality Chapter 16 Sales Channels and Intermediaries Connecting products with markets profitably
  2. 2. Gaining Competitive Advantage <ul><li>“ For a business to be viable at all, it must do something well. For it to win in a competitive market, though, it has to do something better than its competitors.” </li></ul><ul><li>To achieve competitive advantage, you have to be better than your competitors at something your customers consider important. </li></ul><ul><li>That something could be a better product or service , a lower price , or providing customers what they want and how they prefer to acquire it . </li></ul>
  3. 3. Hilton’s Sales Channels <ul><li>A mixture of </li></ul><ul><li>a hotel-specific sales force </li></ul><ul><li>a national sales force </li></ul><ul><li>the Internet </li></ul><ul><li>telephone sales centers </li></ul><ul><li>centralized reservation centers supported by national marketing campaigns </li></ul><ul><li>sales intermediaries such as travel agencies and tour wholesalers </li></ul><ul><li>strategic alliances with airlines and credit card companies </li></ul>
  4. 4. Chapter 16 Outline <ul><li>What channels are being used in the hospitality industry and why? </li></ul><ul><li>What implications do these channels have for the hospitality sales professional? </li></ul><ul><li>How should the channels be managed to make them an integrated go to market system? </li></ul>
  5. 6. Types of Travel Agencies <ul><li>Vacation stores </li></ul><ul><li>Commercial agencies </li></ul><ul><li>Direct response agencies </li></ul><ul><li>Cruise only agencies (no airline accreditation) </li></ul><ul><li>Consolidators </li></ul><ul><li>Meetings, incentive, convention, and expositions (MICE) </li></ul><ul><li>Tour operators </li></ul><ul><ul><li>Preformed versus FIT </li></ul></ul><ul><ul><li>Inbound (receptors) versus outbound </li></ul></ul>
  6. 7. Channel Mixes Come in Three Forms <ul><li>Intensive </li></ul><ul><li>Selective </li></ul><ul><li>Hybrid </li></ul>
  7. 8. Example of Intensive versus Selective Channel Coverage Value of sale High Med Low Need for customization Low Med High Internet Telemarketing Direct sales ‘ Intensive ’
  8. 9. Example of Intensive versus Selective Channel Coverage High Med Low Value of sale High Med Low Need for customization Low Med High Need for customization Low Med High Value of sale Internet Telemarketing Direct sales Internet Tele- marketing Direct sales ‘ Intensive ’ ‘ Selective ’
  9. 10. <ul><li>Web marketing and design </li></ul><ul><li>Ad development and placement — intern would need to be familiar with PageMaker or similar software </li></ul><ul><li>Package research, design, and implementation </li></ul><ul><li>Tracking of package results </li></ul><ul><li>Travel agent incentives and tracking of the results — Hilton Hotel programs </li></ul><ul><li>Group incentives and tracking of the results — Hilton Hotel programs </li></ul><ul><li>Market segment report development and analysis </li></ul>Hilton Hotel Corporation is looking for a marketing intern that would work directly with the DOSM on various projects such as:
  10. 11. Example of a Hybrid Channel Coverage Value of sale High Med Low Need for customization Low Medium High Travel agencies + Internet Telemarketing Call centers Internet Telemarketing Call centers Sales force No coverage
  11. 12. So Why Not Use All Sales Channels? <ul><li>Multiple sales channels may end up chasing the same sales (channel shift versus channel lift). </li></ul><ul><li>Not all channels will be profitable in every product-market segment. </li></ul><ul><li>Channel conflict problems arise. </li></ul>
  12. 13. Re-Engineering the Sales Process
  13. 14. Re-Engineering the Sales Process Reduces costs; improves quality

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